B2B Buy Now, Pay Later (BNPL) and Flexible Financing

Trend Overview: B2B Buy Now, Pay Later (BNPL) and Flexible Financing

The consumer “Buy Now, Pay Later” craze has officially crossed into B2B.

By 2026, offering flexible payment terms at the point of sale – essentially instant trade credit – is becoming a standard expectation in B2B commerce.

Business buyers are seeking the same convenience of deferred payments that consumers get, but tailored to B2B needs (typically 30, 60, or 90-day term options rather than 4 bi-weekly installments). Fintech providers have emerged that allow a supplier to get paid immediately while the buyer pays the BNPL provider later, enabling frictionless net terms without the seller carrying the risk.

The shift is driven by evolving buyer expectations. Business buyers now want flexible, personalized payment terms that adapt to project cycles and market pressures. In other words, companies want the ability to delay or schedule payments in alignment with their cash flow, and suppliers who accommodate that will win more business.

By making payment terms a strategic offering (instead of a rigid 30-day net or bust), companies can improve customer acquisition and loyalty.

The BNPL trend in B2B is also fueled by technology – seamless API integrations that embed financing offers right into online checkouts or electronic invoices. We’re seeing strong growth in this space: the global B2B BNPL market hit an estimated $14 billion in 2023 and is projected to continue high double-digit growth, possibly reaching a trillion-dollar scale by 2030.

In 2026, “pay in 30 or pay in 4 monthly installments” might just be another button on every B2B invoice.

Industry Impacts: Key Sectors and Opportunities for B2B BNPL

Wholesale and Distribution: Wholesalers and B2B distributors (e.g., industrial supplies, food wholesalers, electronics distributors) are jumping on BNPL as a way to offer their small business customers more attractive credit terms.

Traditionally, these industries have offered trade credit (net 30, 60) to select buyers, but it’s been a manual, slow process with risk for the supplier.

Now, fintech BNPL services (like Terms-as-a-Service) let even mid-sized wholesalers extend terms at checkout, solving the pain point of credit approval delays and risk.

The opportunity is higher sales – a plumbing supplier, for instance, might see a small contractor buy more if they can defer payment until after they complete their project. Also, it can attract new customers who choose the distributor that offers instant net-60 over one that demands upfront payment.

Manufacturing & Capital Equipment: Manufacturers of expensive equipment or large orders can use BNPL-style financing to break big invoices into installments, easing the capital burden on buyers.

For example, a machinery supplier could let a factory pay 20% now and the rest over 3 months. The pain point of customers needing bank loans or extensive credit checks for big purchases is mitigated by fintechs that do quick credit scoring in the background.

This flexibility creates an opportunity to close deals faster and reach a broader market (some customers who couldn’t afford a lump-sum $100k machine might proceed if they can pay over time).

It essentially consumerizes the financing experience – making it simple and embedded, rather than a separate bank process.

B2B Marketplaces and E-Commerce Platforms: Online marketplaces that connect businesses (for example, a B2B ecommerce site for office supplies, or a platform for agricultural goods) are embracing BNPL to smooth transactions.

These platforms often have many SMB buyers who appreciate cash flow help. By offering net terms or installment options at checkout, the marketplace solves a major pain point for buyers – the strain of paying upfront before they themselves have revenue from using the goods.

It also helps sellers on the marketplace get paid faster (the BNPL provider pays them), solving the trust issue in new trading relationships. The commercial opportunity is significant: marketplaces report higher conversion rates and larger basket sizes when BNPL options are present, as buyers are less price-constrained at the moment of purchase. BNPL is quickly becoming a competitive necessity.

Technology Roadmap: Enabling BNPL, Invoice Financing, and Flexible Payment Rails

Integration with BNPL Providers: Payment processors and PayFacs often find it expedient to partner with specialized B2B BNPL providers (e.g., TreviPay, Resolve, Bluevine) rather than build these financing capabilities from scratch.

On the roadmap, this means developing APIs or modules that allow a BNPL option to be offered alongside standard card/ACH payments in an invoice or checkout flow.

For example, a PayFac serving an e-commerce platform might integrate an API from a BNPL provider so that when a buyer selects “Net 60”, the system pings the BNPL service for an instant approval and then processes the payment to the seller.

Orchestrators could also play a role, routing the transaction either through a pay-later service or a normal gateway based on buyer preference. This requires close integration between order management systems and payment systems, because the “approval” is essentially a credit decision happening in real time.

Credit Scoring & Data: If processors or PayFacs decide to build some BNPL capabilities internally, they need to invest in real-time credit scoring and risk management technology.

That includes pulling business credit data, using AI models to assess a buyer’s creditworthiness in seconds, and setting up risk-based pricing or terms.

Even partnering with a BNPL provider, the payment company should enhance its data exchange – sharing relevant transaction history or buyer info (with consent) to help the BNPL underwrite more accurately.

These are more like lending system features, so some payment companies will build or integrate lending platforms into their roadmap.

Workflow and UX: From a product perspective, seamlessly embedding BNPL into the user experience is crucial.

This might involve UI components (for example, a widget on an invoice saying “Get 60-day financing for this purchase”) and clear disclosures. The technology should make the process nearly instant: one click to request terms, a response in a few seconds, and then the order is completed. Any friction here (long forms, delays) undercuts the value.

Therefore, an emphasis for engineering is streamlining onboarding – perhaps pre-approving credit lines for frequent buyers using historical data, so the option is pre-presented without a new credit pull each time.

On the flip side, incorporating BNPL means handling more complex finance agreements post transaction – the tech stack should be able to manage installment schedules, track balances, and handle settlements to the merchant and repayments from the buyer.

Portfolio and Partner Management: As BNPL programs scale, payment companies (and their BNPL partners) need robust portfolio management tools.

This includes monitoring usage, defaults, and identifying if certain industries or buyer types are riskier. The insight can feed back into adjusting algorithms or cut-offs.

For instance, if the data shows that “buyers in the construction sector paying via BNPL have higher delinquency beyond 60 days”, the system might tighten terms for that segment.

Payment providers may also consider how to fund these programs – many BNPL providers have their own capital or bank lines, but some processors might explore using their capital or forming joint ventures to share in the lending revenue.

This starts to blur into banking territory, so compliance (licensing, interest rate disclosures, etc.) becomes part of the roadmap discussion as well.

Go-to-Market Strategies for BNPL and Business Financing Solutions

To quickly gain ground, many payment firms will utilize Payment Facilitation-as-a-Service and BNPL combos. For example, a vertical SaaS could sign up for a PFaaS solution that not only enables them to take payments but also has a built-in BNPL offering for their industry.

On the marketing side, emphasizing how offering flexible terms can be a sales tool for merchants is key. Highlighting how BNPL can help them capture more revenue as well as driving FOMO - if competitors offer it and you don’t, you’ll lose customers.

Training the salesforce to handle objections (like fear of credit risk) with points about third-party BNPL providers taking on the risk will also smooth adoption.

In summary, the companies that integrate financing options into their payments suite stand to become more indispensable partners to B2B merchants, as they’re not just moving money but actively enabling commerce.

Flexible financing is now a B2B differentiator. Praxent helps payment platforms embed BNPL and instant credit options that drive sales without adding risk. Our product and engineering teams have a blend of payments and lending expertise. We integrate the APIs, build the decision-ing algorithms and stand up the repayment/settlement systems so you don’t have to reinvent the lending infrastructure. All without diverting your core team.

Learn more about Praxent’s B2B payments technology consulting and engineering solutions.

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Frequently Asked Questions

1. What is B2B Buy Now, Pay Later (BNPL)?
B2B Buy Now, Pay Later is a type of flexible financing that lets business buyers delay payment over time while the supplier gets paid upfront by a financing or BNPL provider.

2. How does B2B BNPL work in practice?
At checkout or on an invoice, the buyer selects a BNPL or flexible payment option (for example, net 30, 60, or installments). A BNPL provider quickly assesses credit and, if approved, pays the supplier while the buyer repays over the agreed schedule.

3. Is B2B BNPL the same as invoice financing?
They are related but not identical. Both unlock cash flow on receivables, but invoice financing typically advances funds against outstanding invoices, while BNPL embeds the financing decision directly at the point of purchase to create instant terms.

4. What are the risks of offering BNPL in B2B payments?
Risk concentrates around buyer defaults, fraud, and underwriting errors. That’s why payment companies and BNPL providers rely on data, real-time credit scoring, and strong collections workflows to manage portfolio performance.

5. How can payment platforms start offering B2B BNPL?
They can either partner with specialized B2B BNPL providers via API integrations or build their own BNPL stack, including underwriting, risk management, repayment, and portfolio monitoring. In both cases, embedding BNPL seamlessly into existing B2B payment flows is key to adoption.